Thanks for visiting New York Bar Store - We have a completely new shopping experience for you in 2010! Hope you enjoy, and of course feel free to contact us with any questions - phone, email, or chat! Cheers - Mike Michelini
Monday, 17 May 2010
Wednesday, 17 March 2010
How To Save Money on Credit Card Processing
What you don’t know about credit card processing could be costing you thousands!
It’s been said that in real estate, it’s all about location, location location. Well, when it comes to credit card processing, it can be said that it’s all about risk – that is, risk, risk, risk! Credit card company processing rates are based on the assumed risk the card issuer takes on a given transaction. A transaction can come back to haunt the card issuer in a number of ways. The card can be stolen, there can be insufficient credit to cover the transaction, or the cardholder can just not pay their bill. The merchant can lose the customers information, can sell bad products or services resulting in excessive chargeback’s, or may have a vague customer satisfaction policy. The more you can do at the time of the sale to prove the validity of the transaction and the company behind it, the lower processing rates you will be rewarded with.
So how do you lower the risk? Glad you asked. Here are some top ways to lower risk and thereby save money on processing.
Pin based Debit
“Credit or Debit?” – These three words will save you THOUSANDS of dollars a year!!!!!
A debit card transaction is billed at a much lower discount rate than a credit card transaction. As stated before, it’s all about risk. Since a debit card is accessing funds your customer already has sitting in their checking account, this is therefore the lowest risk transaction. There is no worry that the issuing bank may not be able to collect the funds, as they are already sitting there ready to be accessed.
However, to get the BEST rates, your customer will need to enter their pin number. Otherwise, you can still run the card as a debit but the issuing bank will regard it as a “check card” and you’ll get your non-qualified rates (typically 1.5%-1.9%) as opposed to your PIN based debit rates (.03% to .08%). As you can see, this can make a BIG difference in your bottom line!
Pin based debit is particularly applicable for smaller ticket sales, where your client will already have the funds available to cover it – delis, coffee shops, gas stations, convenience or grocery stores, retail, or anywhere with average tickets under $100.
Does your company currently accept pin based debit? If not, CLICK HERE (FORM 2) for a free no obligation comparison to see what you can save. Qualifying merchants can receive a free pin based terminal or pin pad.
Address Verification System (AVS) and Card Verification Value (CVV) codes
Most credit card processors will give you enticing qualified rates for your transactions, but these always come along with higher rates for “mid qualified” and “non-qualified” transactions. First, it is very important to get all discount levels up front, as many processors like to just quote you their attractive qualified rates, with no mention of mid or non-quals. Mid and non-qual rates typically fall between 1%-2.5% in addition to the qualified rates!!!
But how do you ensure that your swiped transactions remain as qualified transactions and your keyed in mid-quals don’t slip to non-quals? Two key pieces of information are required to keep your credit card rates in check are Address Verification System (AVS) and Card Verification Value (CVV)
- Address Verification System (AVS) – AVS is a system that matches the billing address on file for the card with the billing address entered at the time of check out. This offers an additional level of protection to the card issuer, since it proves that the person using the card knows as well the billing address, thus adding to the security of the transaction. Simply put it’s another “check” put in place. Typically only a zip code is required to produce an AVS match.
- Card Verification Value (CVV2) – Generically referred to as a “CVV code”. CVV stands for “Card Verification Value”. There are two codes – one is stored in the magnetic strip on the card and read automatically when the card is swiped. The other, more common usage is for the 3 digit code printed on the back of Visa or MasterCards, or the 4 digit code printed on the front of American Express (Amex) cards. This code is generally requested for any sale where the card is not present, such as online orders or any time a card is keyed in manually. Without getting into the technical aspects of its usage, as a merchant all you need to understand is this is another check in place that’s going to save you money if you get it. Many processors will still allow you to run a transaction without the CVV code, but BEWARE – this is going to make your transactions slip to non-qualified, costing you 1%-2.5% in additional processing charges!
NOTE – “CVV” is the common name for this value, however, this is actually the term of it on Visa cards. MasterCard calls it a CVC2, and American Express refers to it as a CID code. From the merchant and customer standpoint it’s all the same – if you say “CVV” or “the three digit number on the back of the card” it’s all the same.
PCI DSS Compliance
Beginning in June 30th 2010, all merchants will be required to meet the new PCI-DSS security compliance guidelines. PCI DSS is a multifaceted security standard that includes requirements for security management, policies, procedures, network architecture, software design and other critical protective measures.
But that only matters for “the big guys” right? WRONG – although big corporations have more data to breach, they also have much more secure systems in place and entire departments dedicated to protecting that data. It takes a world class hacker to break these systems. By comparison, lifting data from a smaller merchant is like stealing candy from a baby. No wonder small businesses account for 40% of all data breaches. And with an AVERAGE cost to the merchant of a data breach at $202 per card holder affected, this is not just a matter of saving money, it’s a matter of saving your business!
Even if you are not actually breached, just being suspected of a breach could result in an audit of network vulnerability, penetration testing, manual computer inspection, wireless network security testing, phone line testing, etc. This will take a minimum of several days, in which time your operations will basically be completely halted. Then, after all that, YOU get stuck with an $8,000-$20,000 bill for the inspection! Again, this is just if you are SUSSPECTED of a security breach…I won’t even bother getting in to what it costs if they actually find a breach. And these figures are based on a “Level 4” merchant, which means less than $20K a year in online sales or less than $1M a year in sales for a brick and mortar location. For more information on PCI-DSS compliance, please visit https://www.pcisecuritystandards.org/security_standards/pci_dss.shtml
Note: PCI DSS compliance not only involves your credit card processing service and machine, but also data storage, fax procedures, even paper shredders. For more information on the full scope we suggest visiting the above listed website.
Is your terminal PCI-DSS complaint? FIND OUT! Even if all your business practices are completely sound, if your equipment is not, you are held accountable.
For a listing of PCI-DSS compliant machines, CLICK HERE (hyperlink to below) to search your make and model number https://www.pcisecuritystandards.org/security_standards/ped/pedapprovallist.html
Want a PCI-DSS compliant machine? CLICK HERE (FORM 3) to see if you qualify for our free terminal placement program!
Wireless Terminals
Wireless terminals are the new way to save money for your business. If you have a delivery business (such as pizza or Chinese food) or business that requires you to go to the customer instead of them coming to you (IE plumber, electrician or tow truck), wireless terminals may be the answer for you! Although there are charges associated with the terminals, such as monthly access and typically a small additional per transaction charge, you could stand to save thousands by getting qualified rates on cards swiped in person vs. keyed in over the phone!
Here’s a quick example. Tony owns a pizza shop and you has a qualified transaction rate of 1.69% (with the card swiped and signed for) and a non-qualified of 2.99% (for orders he keys in over the phone). His average ticket of $25 and his shop does an average of 20 deliveries a night. So with a total of $500 per night on credit cards, we’re looking at:
- Keyed in card number:
$500 x 2.99% = $14.95
- Wireless terminal:
$500 x 1.69% = $8.45 + ($.10 additional x 20 transactions) = $10.45
Multiply this out over 30 days and Tony saved $135 in processing charges…that’s a lot of dough (sorry, couldn’t help it)! Wireless access typically costs $25-$30 per month additional, but as you can see he is still saving at least $100 per month. And if your volumes are higher than Tony’s, of course you only stand to save more. And not to mention you can take PIN BASED DEBIT on a wireless terminal, turning that 1.69% to .05% if you are properly set up for it! The savings can be significant.
Additionally, with a signature for the transaction, Tony is avoiding those pesky chargebacks. In the case of a dispute, with a signature on file he has no problem winning on the disputed transactions. With an average of one chargeback a month he was getting before and a $25 average ticket, that’s $25 bucks more in his pocket. And without getting hit with chargeback fees, that’s another $20. Add it all up, and the savings are around $150 per month.
Can you save money by adding wireless processing services? CLICK HERE (FORM2) to find out – we’ll be happy to run a comparison for you to see if wireless makes sense for your business.
Get on the right plan for your business – Retail vs. Moto, Tiered vs. IC+ Pricing
What’s the right plan for YOUR business? There is a very clear and simple answer to that question that applies to all merchant types; it depends. Any credit card processor can spit out low rates and waived fees in an attempt to earn your business, but unless they are asking you about your business, how you plan to accept payments, and what kind of payments you plan to accept, they can easily extract much more money out of you than you realize. A good processor takes a consultative approach and will guide you to savings rather than just undercut the next guy. After all HOW you accept cards is more important in determining your rates than the rates themselves.
- Retail Account – “retail”, in credit card processing terms, means that more than 50% of your business is processed by the customer actually swiping the card in person. Retail will always result in the best rates. Retail accounts as well can include pin based debit transactions.
- MOTO – MOTO is an acronym used in the industry to describe “mail order / telephone order” accounts. MOTO accounts are when more than 50% of your orders are keyed in to a terminal, be it a physical or virtual terminal.
Why is it important to understand the difference? First, if you are set up as a retail account, you will get a lower cost on qualified transactions, and especially on pin based debit. However, your mid and non qualified transactions (those you key in) are going to be at a slightly higher rate than if you were set up as a MOTO account. Therefore, even though you are saving on your qualified rates, you may be losing on the keyed in entries vs a MOTO.
Conversely, you could be set up as a MOTO account, keying in all transactions. However, if you have the client in front of you, you certainly could be swiping that card and saving nicely by doing so.
How can you tell which better fits your business? It’s tough to say. Credit card statements are often made intentionally cryptic, as its easier for processors to make money if they hide what they are actually charging as opposed to just coming out and telling you.
For a free, no obligation comparison, CLICK HERE (FORM 2).
Pricing Plans: Getting on the right pricing plan for your company is c. For decades tiered pricing has been the norm, while interchange plus (IC+) pricing has mainly found in larger corporations and high volume chain stores. Knowing the difference is the first step in determining which is right for you.
- Tiered pricing – Tiered pricing is by far the most common form of pricing. Tired pricing typically consists of 2-5 “buckets” into which different card types are grouped. Most typical is a 3 tiered system, with different rates for qualified, mid qualified, and non-qualified transactions. It is also simplest for the merchant, and will result in more consistent charges for processing each month on a given sales volume.
- IC+ Pricing – Interchange Plus pricing is more typical of larger companies with more than $100K per month in sales, and is as well the standard in grocery stores. Interchange is the base rate, set by the card issue (Visa or MC), for any transactions they process. IC+ pricing is exactly that – you pay base rate plus a certain number of base points (20-40 is typical) + an additional $.10-$.25 per transaction. Although this pricing scheme generally produces the lowest overall rates, minimum sales volumes typically apply, based on industry type. As well, IC+ pricing can create very inconsistent processing charges. One card may have in IC rate of .62% + $.13, another can 2.95% + $.30 (keep in mind this is IC – don’t forget about the “+” part – add another 20-40 base points). They then vary as well based on if it is a personal, business or corporate card. Between Visa and MC, there are well in excess of 500 different interchange rates that could apply.
How do you know what kind of card you are accepting and where that card will be “placed” when processed? Sorry to say, but with either system, it’s basically impossible. On a tiered pricing system, generally keyed in transactions, rewards cards and corporate cards will fall into mid-qualified. And non-qual will be if there is an issue matching address, CVV, or even still some corporate card types where these do match up. For IC+, it’s virtually impossible to determine what your actual rate will be.
Figure out your “actual” rates and compare!
When discussing credit card rates, merchants and credit card processors alike both like to talk in terms of qualified rates. “I get 1.69% + $.25”…”we can do 1.6% + $.20”…and so on. Many processors like to entice you with a low rate for qualified transactions. However, how many of your transactions are qualified? At best its 75-80%…at worst its 0%. Most will fall somewhere in between. Looking at a credit card processing charge based solely on qualified rates is like judging an iceberg by the part that sticks out above water.
It’s easy to toss around figures on what you can offer on qualified rates. However, this does not take into account:
- Mid qual rates
- Non qual rates
- Monthly statement and access fees
- Annual Fees
- Surcharges
- Minimum processing charges
- Set up fees, application fees, gateway fees, etc.
What a processor can charge you for is limited only by their imagination and how small a font they can make the fine print. Many will give a very low qualified rate, and make their money by exorbitant charges for mid and non-qual rates. Others offer zero fixed costs, but have higher per transaction charges. At the end of the day, everybody that is selling credit card processing services is making money one way or another, and are packaging that deal in one way or another to make it appealing to the merchant. If you don’t charge one fee, you make up for it somewhere else. A discount here means an added fee here.
How to get your “actual” effective rate:
When comparing your rates, it’s important to find out what you are REALLY paying.
First, you’ll want to “strip off” your fixed charges. That would be statement fees, monthly fees, regulatory fees, etc.
Next, you’ll want to discount any batch fees off the top, as well as you per transaction charges.
Now you’re left with just your total dollars processed and total amount you were charged for processing. Divide what you were charged vs. the total dollar value of what you processed and voila, your effective average rate. Now compare that to your qualified rate. Hopefully, you’re sitting down for this part.
Interested in a full rate comparison? CLICK HERE (FORM 2) and we’ll be happy to assist.
Summary
If nothing else, I hope that I’ve been able to demonstrate that when it comes to credit card processing services, it’s important to dig just a little deeper than the rates you see posted. It’s a shady industry, and everyone out there is trying to make a buck (well, more than that) one way or another. I see too many merchants paying WAY too much for their processing services, and thinking they have a deal because of their “low qualified rates”.
A good credit card processor will:
Fully disclose all charges to you up front, clearly spelled out, and will work with you to ensure you understand all the “ins and outs” of the contract, not just throw some numbers and fine print on a page and try to get you to sign.
Beyond that, a good merchant account provider will guide you in ways to make more of your non and mid qual’s into qualified transactions, will help steer you toward in pin based debit, will see if wireless makes sense, will understand if you are best serviced by a retail vs. MOTO account.
Additionally, a good merchant account provider will be able to help you beyond just credit card processing, but should be able to provide you with a number of tools to help improve your business operations, such as:
Provide a full rate analysis and pricing disclosure prior to attempting to gain your business.
Cash flow tools such as express funding options, cash advance services, remote check deposit, etc, to make sure that your business always has the cash available to suit its specific needs
Money management tools, such as payments splits to fund various accounts (IE retirement, vacation funds, rent accounts), escrow accounts,
AMAZING customer support (after all, if your service is down, all the rates in the world don’t help if you cant actually process the card)
Online account access, clear and easy to read merchant statements, and payment options
Custom gift cards and customer loyalty cards to increase revenues from your current customer base.
It used to be said that “in business all you need to make a profit is a good product, a good lawyer and a good accountant.” We would like to update that to add a good merchant account provider. A GOOD merchant account provider can often time help you retain up to 1% additional earnings in your company. Over the years, that can add up to many thousands, if not millions, of additional revenues for your company and for you as a business owner.
For questions, inquiries, or more information on any of the above topics, feel free to contact us
(INSERT FORM 5 HERE AT BOTTOM OF PAGE)
Sunday, 21 February 2010
Back Office Processing Services Utilize Resources at Max
It is not possible to achieve any business activity just by carrying out only professional core business. There are a number of services, attached to the core business activity to make it a successful event. These activities are included in back office processing services. Whether it is market feedback or introduction of new product, it is very essential to devote full time for such activities for proper feedback and results. Then only the core business activity also gets successful.
BPO Companies, India are outsourcing activities to their clients for enhancing networking and relationship building activities. BPO outsourcing activities are such that help you and your Company to grow profits and cut down cost. Also back office processing services help in increasing efficiency in areas where it benefits the most to the Companies.
It is very difficult to put your feet in two different boats. You can concentrate on one activity, only. Two activities at a time will wear off your energy and concentration, both. Moreover, Companies find it difficult to invest in extra manpower and infrastructure and that too completely out of current business line. Therefore, BPO Companies are extending call center services to take the extra workload off, from the client’s shoulders and increase efficiency to benefit the business.
BPO Outsourcing is gaining importance due to the growing demands of customer and need to reach customer in professional way. Call center solutions are for customers and clients, both.
There are many back office processing services like book keeping services, accounting services, financial reporting and tax preparation services, and administrative and marketing services that help in efficient working of client.
BPO services are client specific and are conducted under strict surveillance. Services are judged by trainers and team leaders. This makes the executives work to the best of efficiency and give proper results. BPOs are specialized centers which work for their clients and give their services to their clients to satisfy their needs and demands. Therefore each and every activity is carried out with utmost efficiency by performing to the best of efficiency.
Services We Provide For Merchant Account & Credit Card Processing
Services We Provide For Merchant Account & Credit Card Processing
Merchant Solutions is a credit card processing company dedicated to helping retailers find ideal business solutions for all of their credit card needs. Whether your business is large or small, mobile or home-based, we have the perfect plan for you. Getting started is fast, simple, and more economical than you will believe.
Credit Card Merchant Account
Give Your Customers Peace of Mind With Our Credit Card Merchant Accounts
As a merchant account provider, we can quickly and efficiently process all your credit card payments – we communicate with the customers’ banks or credit card companies, collect the payment, and then deposit the funds directly into your own account. Now you can run your business with ease, and leave all the collection work to us.
The right credit card merchant account can provide your customers with a secure and trusted method of payment. The average ticket size of a debit or credit card transaction is substantially higher than that of an average cash sale. And there’s a good chance that many of your customers are more likely to carry a credit or debit card than they are cash. It’s easy, it’s convenient, and it’s secure. Merchant Solutions allows you to offer your customers a safe and trusted method of payment.
A credit card merchant account allows you to accept all payment types and reduce your risk of turning down potential customers, and at Merchant Solutions we provide you with the means to set up an efficient and affordable merchant account. We can set you up with the terminals, pin pads, software, and anything else you need to get up and running. Accepting credit card payments has never been easier or more reliable, and as a retailer you can rest assured that your credit card merchant account will help your business stay productive.
- Accept Credit Cards By Phone
- Home Business Merchant Account
- Wireless Credit Card Processing
- Online Credit Card Processing
Online Credit Card Processing
Easily Accept Credit Cards From Any Of Your Customers With Our Online Processing System
Anyone who runs an eCommerce business knows how important it is to accept credit cards online, and at Merchant Solutions we can help you implement all the equipment and resources you need to quickly and safely process transactions online. Our secure payment gateways allow you to process online payments, worry free, 24 hours a day. So whether you are looking for a virtual terminal or a shopping cart for your website, we have the solutions that can get you up and running in no time.
Credit cards are the preferred method of payment for online shoppers. It’s simple, it’s fast, and it offers the convenience and safety they are looking for. Shopping online can be worrisome to many shoppers. The threat of identity theft is well known, and your customers need to know they can trust you to protect their personal information. People tend to spend more, and spend more often, when they use credit cards, and customers prefer to use them online because of the fraud protection and other safety features they offer. When you accept credit cards online, you offer your customers convenience and peace of mind.
There is no hardware required for online credit card processing, and there are no setup fees to start accepting payments today. With Merchant Solutions you will immediately be able to accept credit cards, debit cards, and checks as forms of payment on your website. Our virtual terminals give you the flexibility to grow and adapt to any situation. If you have a customer that calls in an order, you can simply plug there card information into your virtual terminal.
Our virtual terminal software can be installed on a laptop with wireless Internet access, which means you can even accept credit cards online while you’re on the go. All online credit card processing software and gateways are SSL encrypted to guarantee the highest level of security for you and your customers. Contact us to find out more.
Home Business Merchant Account
Have A Home Based Business? Accept Credit Cards With Our Home Business Merchant Account
A home business merchant account is the perfect option for anyone running a business out of their home. The number of home based business is growing steadily, and by setting up a home business merchant account will help you reach new customers everywhere with a convenient and safe payment method. Merchant Solutions offers all the services and products you need to set up your merchant account and run a productive business out of your home.
Over 80% of payments made over a phone or by mail order are made with credit or debit cards. Credit cards are also the preferred payment method for online purchases, and studies have shown that people spend more money, and spend more often, when they use a credit card. When you offer this method of payment, you are offering a secure and reliable way to conduct transactions and open your business to a much larger customer base.
A credit card merchant account means convenience and safety for both you and your customers. You will no longer have to wait for a check to arrive in the mail, or for that check to clear at the bank several days later. You can also stop pressuring your clients for money orders, wire transfers, or cash payments. A home business merchant account can process the payment in seconds and let you know if the funds are really available. Now you can increase your turnaround time by accepting secure credit card payments right when you receive the order.
Merchant Services offers a wide range of credit card machines and software for home business merchant accounts. If you’d like to learn more about your options, call us toll free at (866) 326-3480 or by clicking below. At Merchant Services we can help make your home based business the home base for your success.
Wireless Credit Card Processing
Accept Credit Cards From Any Of Your Customers Wirelessly
Wireless credit card processing technology is the perfect solution for business owners on the go. For years, mobile merchants have only been able to accept cash or checks for services or products, but the Merchant Solutions wireless credit card terminals allow these merchants to access the same credit card authorization networks they would through a normal retail merchant account. Now you can accept credit card payments almost anywhere you get cell phone coverage.
The wireless credit card processing terminals we offer are reliable, affordable, and give you the flexibility you need. If you are in your retail location one day, and at a trade show the next, or even if you need to take your whole business down the road to a new location, you will always be prepared to accept transactions.
By taking advantage of our wireless credit card processing technology, you can take your business on the road and never have to worry about losing business because you can’t offer the right payment option. Studies have shown that people are likely to spend more money, and spend it more often, if they can use a credit card. If you want to take advantage of this trend, even while on the road, a wireless credit card machine is the perfect solution. You won’t have to worry anymore about checks not clearing, credit cards that get declined off site or carrying around large sums of cash. A wireless terminal means convenience for both you and your customers.
Wireless credit card processing is ideal for businesses such as locksmiths, auto glass repair, and almost any delivery service. Our wireless terminals have built in printers and come with a rechargeable battery pack. They operate over a secure wireless network and are capable of accepting all types of electronic payments. Take a look at what we have to offer, and see how this wireless technology can help your business.
Accept Credit Cards By Phone
Easily Accept Credit Cards From Any Of Your Customers By Phone
Not every business transaction can occur on a face to face basis. Perhaps your business is conducted mainly through mail order, or perhaps you customers and clients live out of state, or even out of country. When you can accept credit cards by phone, however, you don’t have to worry about any of that. Your business can keep on running smoothly and you never have to meet with your customers.
A MOTO (Mail Order/Telephone Order) account is perfect for a business that wants to accept credit cards by phone. If you conduct more than 50% of your business through mail order or over the telephone, then you should consider offering this payment option to your customers. Accepting credit cards by phone or mail order has never been easier or more secure.
The threat of identity theft is very real and very frightening for many of your customers, and the fraud protection offered by most credit cards can give your customers the confidence they need to make a purchase. When you process a mail order transaction or accept credit cards by phone, your hardware or software will prompt you for the cardholder’s billing information. This is one of the measures we use to help eliminate fraudulent purchases.
A MOTO merchant account is great for catering companies, florists, take-out restaurants, and any other businesses that do not have access to physically swipe a credit card through a terminal. These accounts are perfect for business owners who accept credit cards by phone and work out of their home, or companies that conduct international transactions.
We have several credit card machines, software packages, and virtual terminals that can be set up as a MOTO merchant account. If you’d like to discuss these options further, call us toll free at (866) 326-3480, or you can apply on line by clicking here.
Friday, 19 February 2010
Credit Card Processing Through Merchant Solutions
Credit Card Processing Through Merchant Solutions
Choose A Credit Card Processing Company With A Reputation
There are a lot of credit card processing companies to choose from. How do you know which one is right for you? Merchant Solutions, LLC is a reliable and affordable partner that will assist you with all of your credit card processing needs. We work hard to beat our competition by focusing our efforts on delivering the best customer service and the lowest prices possible.
At Merchant Solutions we can help you broaden your customer base by letting you accept all forms of payment. We offer the equipment and the resources for you to make the most of your merchant account. There aren’t many credit card processing companies that can match our affordability and technical expertise. We offer solutions for online businesses, retail establishments, home based businesses, and wireless solutions for companies on the go.
We stock the latest models of PCI DSS compliant credit card machines, as well as check readers, pin pads, and credit card processing software. You can rely on our products and services to help your company get started processing credit cards with minimal trouble. We can help you get set up and will continue to help your business whenever you need us.
Credit card processing companies offer a service that requires the trust of their clients, since we are working with such sensitive information. At Merchant Solutions we are determined to providing you with the equipment and customer service you need, whether you are an enterprise level business, or if you run a single brick and mortar shop in your community.
Merchant Solutions is a credit card processing company dedicated to helping retailers find ideal business solutions for all of their payment transaction needs. Whether your business is large or small, mobile or home-based, we have the perfect plan for you. Getting started is fast, simple, and more economical than you will believe.
Retail Merchant Accounts
Internet or PC Processing
Home Based Processing
Wireless Credit Card Processing
Mail Order / Telephone Order
Merchant Cash Advance
Friday, 5 February 2010
Benefits of Having a Merchant Account
Benefits of Having a Merchant Account
Small business merchant accounts require a certain effort to apply for and set up and then they have a certain maintenance cost, in the form of a monthly statement fee and, in some cases, other credit card payment processing fees and charges. Moreover, merchant services credit card processing contracts are usually for two or three years. So it is a legitimate question to ask what benefits you get from your credit card processing service and is it worth the investment of time to set one up.
Well, the answer is that yes, it is worth it and you should consider establishing one as soon as your processing volumes grow large enough to justify it. By that I mean that there is a break even point, different for every business, beyond which the lower processing rates, associated with creditcard processing accounts, fully offset the fixed monthly fees, which are absent with third party solutions. The main benefits of having your very own retail, direct marketing or PC based credit card processing are:
Professional image. Every type of processing capabilities, including manual credit card processing is perceived as a sign that the business is of a certain size and it is committed to providing a complete shopping service. Actually, taking into account the strict requirements that credit card processing companies demand that applicants meet, it is true that a merchant card processing account comes with a certain level of commitment. Lower processing cost. The difference in processing rates that a direct merchant account provides over a third party credit card merchant processor is significant and cannot be overstated. A comparison between an eCommerce merchant account and PayPal shows that the difference can be as high as 0.8% + $0.05 per transaction for merchants that process less than $3,000 per month. Control over your account. With a third party solution, your processor has a complete control over your card payment processing activity. They can hold on to your money and even freeze your account if a suspicious activity is thought to have occurred. The direct solution gives you complete control over your account. CVV and address verification fraud prevention services help you decide whether or not a transaction is legitimate.
Tuesday, 2 February 2010
What’s the Best Online Merchant Account?
What’s the Best Online Merchant Account?
There’s a huge number of companies out there that are offering Internet merchant accounts, but if you are doing business on the Internet and you want to be successful, you need to discount the vast majority of them because they can do more harm than good.
Firstly some companies are not completely straightforward about the rates they charge. this can be dangerous. The rate for processing card payments on the Internet are more than for face to face transaction so you must be very careful when it comes to working out rate costs, or you can end up paying significantly more than you thought.
The only type of company you should sign up with is one that can offer you a full consultation on exactly what your fee structure will be.
The correct Payment gateway is also very important and the best option for you will depend on the nature and size of you business requirements. Only the best companies will be able to offer a range of choices to fit all different needs.
Contract length is also extremely important. Being made to sign a long term contract is not necessary and there are excellent merchant account providers out there that will let their customers work on a month to month rolling contract, but still the majority of the industry persists with long contracts averaging 2 years in length.
Finally, also vital is the need for excellent technical back up and customer support. If you can’t get the right support then you can’t make sales, so getting this right has to be a priority. Don’t settle for a company that cannot provide dedicated customer service, sales support and technical support teams to administer your account.
Thursday, 28 January 2010
The Basics of Merchant Accounts
The Basics of Merchant Accounts
Back in the day, it was very difficult to get a merchant account. Banks were so strict about requirements which you either met or not. There weren’t too many options as well and the banks offered very little freedom in their policies and rates. Now, a lot of this has changed. There are many companies these days that just might give you a merchant account, whether you’re a big or small business, with or without a physical location. There are simply more providers now who are more liberal with their rules on approving applications and every businessman should take advantage of this.
If you’re looking around for a good merchant account, the most important thing at this stage is to keep your eyes open on the numbers involved – fees, percentages, credit card processing rates, etc. It’s also wise to understand how the bank defines certain terms. For example, “transaction” may mean simply getting authorization but may include processing a return.
The type of business you have also confirms your need for a merchant account. If you have a big business with a huge volume of sales monthly, getting this account can save you money in the long run. However, if you’re just starting out, you may find a third party merchant to be a good way to go. These third party vendors will normally take care of all details, pay the fees and even take care of the risks, including security issues for your customers as they make their purchase online. In this set up, the monthly fees are usually higher, but there won’t be a need to pay set up charges, gateway fees, etc. You simply pick the service you think is good for your business. They will simply instruct you on what to do depending on the service that you have picked.
If you want to give your customers the convenience of making an online payment with their credit card or check, you do have to apply for a merchant account. It is actually very simple. The first general rule you need to follow is to look for options, options and more options. From these, you will be able to spot their differences and base your decision on which one you think will provide you the best service. Take your time to study about fees, rates and policies, especially about security issues. If you have other businessman friends who have merchant accounts, it would be a great help if you could come to them for assistance.
Wednesday, 27 January 2010
Merchant Accounts For Concrete Plants
Merchant Accounts For Concrete Plants
As the price of fuel continues to rise, just about everything in our lives are affected. The price of the food we eat is as high as ever, services we use every day are more expensive to the point that we find ways to do without them and eventually turn ourselves off to certain industries all together. As we all know, some industries are more of a necessity than a luxury; some of these businesses are not feeling the pinch as much, but are definitely seeing a slow go of things these days. The building trades feel the brunt of the “Big money” cut backs as regional and national economies pinch pennies I hopes that unspent development dollars will lead to surpluses, which may lead to less tax hike for the next year. While the theory seems to be sound, the long term effects will be felt by tax payers and their families for years to come. One industry that spans the construction, planning and development industries is the concrete business. Concrete is used in nearly every building project; it’s literally the foundation that all projects are built on. More than an optional building product, concrete is a staple that cannot be avoided; that is unless you want to see a sea of one story, new construction buildings for the rest of your natural lives?
The increase in fuel prices affects the pricing of concrete more than many raw products, as it’s a product in itself of many other industries whose existence supports the concrete industry. As concrete is made of stone, the production of concrete graded sand and stone that meets a particular specification relies on the fuel pricing to remain at a level low enough to let those businesses control their costs, while not passing them onto their customers as much as possible. Unfortunately for the aggregate industry, fuel pricing has forced them to either raise prices or go out of business. After the hits that the concrete business has taken and prices have been raised, the construction industry has bared just about as much as they can afford, in terms of cost increases; now the money is coming directly out of the profit that the plants take. In terms of cost saving measures, monitoring their credit card processing fees and rates has become a popular way of keeping them in the black. As a lot of concrete purchases are over the phone, many banks impose higher rates to plants because the chance of fraud and theft are higher, due to these “Card not present transactions.” Many merchant service providers specialize in obtaining merchant accounts for these types of businesses through processors and banks that offer low rates and reduced fees. Taking domestic merchants offshore is a shift in processing trust that is becoming more mainstream and acceptable by US business owners, as domestic banks regulate their accounts with outdated regulations and their own need to increase their profits. It’s not that non-US banks don’t care about profits; it’s more a case of, that’s the way they have been doing business for years. If you’re in the concrete or aggregate business and are looking to better your processing capabilities, contact a merchant service provider today.
Monday, 25 January 2010
Master Card Visa Merchant Account Options
Are you familiar with the many types of MasterCard / Visa merchant account options that are available for small business owners? You may be eligible to apply for a merchant account from a bank or other lender who will underwrite your account services in order to help your company grow. The service works much like a personal credit card account. You apply, get approved, and start using it in a responsible manner. You might be able to work with a local banker or the institution with which you hold a personal credit card. Otherwise, you can apply with several merchant account vendors who are looking for serious entrepreneurs with whom to do business. To be eligible, your company should not have a poor credit history, you should not be carrying too much debt for your company size currently, and you should not be involved in an enterprise that creates doubt or suspicions for the underwriters.
When your merchant account status is confirmed, you can soon enjoy the benefits of credit card processing that the MasterCard/Visa merchant account options provide. For one thing, you can buy a credit card processor for a few hundred dollars and start using it in your shop or store to let customers pay by credit card if they prefer. Instead of fumbling to make change or suspiciously eyeing a new-account check, you can blithely swipe a credit card from dozens of customers and keep the checkout line moving smoothly. Even if you deliver goods or services to customers all over the city or in a multi-county area, you can take along a wireless credit-processing unit for point-of-sale transactions, thereby eliminating billing worries for months to come.
Another way that your MasterCard/Visa merchant account can serve your business is by providing a pager to help you keep in touch with clients or employees. Getting out of touch is a fast way to lose your customers’ business or to let employees turn careless. An exciting innovation in recent years is the telephone credit processing system that many companies are now using. Your customers are able to call a toll-free number, select options from a pre-recorded menu, and then key in a credit card number for payment. They can order and make payments in this manner either by day or night, since the system is operated and need not be restricted to access during business hours. A customer services representative can be available during selected hours to answer questions or provide assistance.
The electronic age is here to stay, and entrepreneurs realize the importance of keeping up with e-commerce trends. Not only are their competitors doing so already, but customers are expecting to use these methods as well; in fact, some may demand them or take their business elsewhere. A merchant account can provide up-to-date, affordable services to upgrade the quality of your company’s operations. Don’t be left in the Dark Ages while everyone else is flourishing with innovative business technology. Find out how your company can grow with the help of a MasterCard/Visa merchant account.
Wednesday, 20 January 2010
Merchant Account Reserve
A Reserve is a portion of the monthly revenue from a merchant’s card processing transactions that credit card processing companies may request to hold in an escrow account as an insurance against possible loss from chargebacks and other sources. Used mainly with high-risk merchant accounts, upon satisfactory completion of a predetermined period, reserves are returned to the merchants. In the case of a rolling reserve, a reserve is held every month for a certain period (usually six months). On the following month the first month’s reserve is released to the merchant, and then the second month’s reserve and so on until there is no longer a reserve.
Certain industries tend to be riskier than others and generate higher levels of chargebacks. All merchants that operate in a non-face-to-face environment fall into this category. Direct marketing and eCommerce are two examples. Yet, only a small percentage of these businesses will be asked for a reserve – usually businesses that process large volumes and have a large average ticket. New businesses that operate in the virtual realm are also prime candidates for a reserve and are carefully examined by their processors. Merchants that are at the very high end of the risk scale and cannot get a merchant account with a US processor are certain to be asked for a reserve if they apply with an offshore provider, in addition to the very high processing rates that they will be charged.
A reserve may also be requested if a merchant has a bad credit history, in addition to a personal guarantee. In cases where a reserve is required, the minimum reserve balance for small business merchant accounts is set at about 20% of the anticipated credit card payment processing volume. New merchants are usually allowed to build up their reserve by sending in transactions which are not withdrawn until the minimum reserve balance is achieved; after that, the merchant is allowed to withdraw the excess funds for transfer to their checking account.
Every credit card merchant processor has a different underwriting policy, so it is a good idea that you request several credit card processing proposals before making a decision. It may just turn out that one of them does not have a reserve requirement. Yet, this is just one of the factors that you should consider when selecting a provider. Processing costs, customer service, transaction reporting capabilities, chargeback and risk management tools, fraud prevention services are all very important and should be carefully evaluated.
Tuesday, 19 January 2010
Online Offshore Merchant Account
Why do you need an Offshore Merchant Account?
Many online businesses look for a merchant account abroad for various reasons, ex. have large volume requirements, fast business growth, cannot be approved at a standard processing bank due to new regulations poor credit, or the type of products or service that they sell. By processing through an offshore processing bank, your business may qualify for no monthly or yearly volume limits, and very lenient product type requirements, so your business will never be hindered by the strict guidelines of a domestic processing bank. Many businesses such as software, website hosting and electronics fall into the high risk category and must use a merchant account abroad. Some of the largest and most respected businesses in the world use offshore processors due to their growth and product types.
The growing need for processing abroad continues to increase. Due to US laws and regulation changes in the Untied States, banks and processors have tightened their due diligence and acceptance to merchants processing payments online. If your business is growing due to increased sales and your U.S. acquiring bank is threatening to terminate your merchant account, then you will need to start seeking and offshore merchant account. They have become a necessary aspect of the ecommerce world.
What to expect =
• Accept MasterCard, Visa, American Express, Discover, Switch, Solo and JCB
• Multi-Currency Credit Card Processing
• Gateway – to process your electronic payments, normally offered free by merchant service providers.
• Shopping Cart – Compatible with most leading shopping cart vendors.
• High approval rates, even if you do not have perfect credit you there should not be an issue with you obtaining a merchant account.
• Virtual Terminal – To enter MOTO orders
• Recurring billing – Ability to auto bill recurring payments.
• Check accept – Ability to accept checks online though your offshore provider,
• Online View – Ability to access your merchant account activity online 24 hours per day, 7 days a week.
Online Commerce has become an important sales source for businesses throughout the world. The internet allows an unlimited amount of customers, which makes doing business on the internet very appealing. An offshore merchant account is what you will need to grow your business. With an offshore merchant account you will not have to worry about jeopardizing your merchant account for growing your business!
Friday, 15 January 2010
Getting A Merchant Account For The Travel Industry
Getting A Merchant Account For The Travel Industry
The Travel Industry is a very lucrative business. Unfortunately, it may be difficult to get a merchant account for this business. There are a few merchant account providers that will take a chance, but for the most part, the majority is not interested. Getting a merchant account for this category is considered high risk.
When you do find a merchant account that will cater to you, they probably will have restrictions on what they will do for your business. For instance, the ones that will work with you will only approve charges for commissions, car rentals and hotel stays. They won’t approve charges for cruises, tours or airplane tickets.
The unfortunate part about this is that you may not find out that the latter isn’t covered until some of your customers notice and start to complain because the funds are being held up. That’s not a good way for providers to do business. Merchants should know up front what they’re going to pay for.
Prior to a transaction, the merchant should be approved for the amount specified. There are some providers who will approve the merchant, but the catch is there is a limit to the amount merchants can get.
When getting a merchant account in the travel industry, merchants find out after the fact about hidden fees. These fees include monthly gateway fees, annual fees, batch fees and other fees that are not listed until such time.
Another downside is that if the merchant does not meet the minimum amount of monthly sales each month, they’re subject to a service fee.
Beware of merchant providers trying to sell you merchandise that you don’t need. They’ll try to sell merchants expensive equipment or a lease that you can’t cancel after you’ve signed on the dotted line. Since the more legitimate merchant providers do their business over the phone, the equipment is nothing but a waste and not needed.
There is also something called “teaser rates”. Some merchant account providers will offer special rates in order to get merchants to sign up with their company, only to raise the price again after a few months. Offers like these usually have another catch. Since the rates initially offered are supposedly low, look out for any penalties that may be attached to the offer.
Hidden fees alone can cost merchants from three to four digits in any given period. This usually happens when a merchant account provider omits certain fees. Check this out before you sign on the dotted line.
Merchants should also check out their customer service. Merchants should see how they operate and how they treat them. Merchants should look and see if they do what they say they’re going to do.
When looking for a merchant account provider, they should be able to provide great service. After all, merchants do paying money to them for assistance. If they can’t provide or do the work, then it’s time to look for someone else.
Merchants need to remember to be prudent when looking for merchant providers that will meet their needs.
Wednesday, 13 January 2010
Do Free Word Processing Programs Really Pay You Again and Again Word processing is the most common place for home offices to automate. You can easily
Word processing is the most common place for home offices to automate. You can easily create, and print any document, letter, report, spread sheet. Saving your documents, articles, and web pages to edit or revise whenever needed. Instead of wasting time re-typing, focus on polishing your project. You can even convert instantly to a pdf file with the touch of a button. Improving the quality of your finished product.
Most people will associate word processing with Microsoft Word. This may not be the best program for your business. If your just starting out and want to keep your expenses down, you’ll probably need to look for budget friendly options. Which would make obtaining free word processing a viable and necessary option. Freeware does not mean you have to sacrifice function for price. Enabling you to work efficiently, while maintaining the professional quality you require and demand.
Most computers come with basic word processing programs such as NotePad, WordPad but they probably don’t have all the features that you need for your business. They will work well as text editors but are missing the all important spell check feature. Pasting from one program to another can be a cumbersome just to check for spelling or typing errors.
Spreadsheet programs are a necessity for some businesses. Easily keeping track of your data. Can be useful for just about any business that works with numbers, sorting data, or organizing a project. Commonly utilized for budgets, forecasting sales, and some accounting. A must for analyzing financial information. Eliminates repetitive work. Making organization easy.
There are two free office suite options that have the capabilities of the word processing components. Performing almost any task. Going beyond simple word processing. Such as embedding pictures, creating tables, opening almost any type of text document. Including spread sheets, email capabilities and one program can even convert your document to a pdf file with the press of a button.
OpenOffice has a mail manager, word processor, spreadsheet, data base manager, slide show designer, calculator, PDF creator, and a chart designer. Providing powerful features that other programs charge you hundreds of dollars for.
I use this program almost every day. Great program to help you keep organized. Has simple templates that you can create for documents, keeping lists, planning, or even tracking inventory.
StarOffice in another program worth looking into. While the interface can take some getting used to, it was intended to compete with Microsoft Office.
With so many great options to handle all your word processing and publishing needs, you can easily reap the rewards of automating your office. Work smarter. Get paid for your efforts again and again.
Merchant Accounts to Sell Ebooks
Selling digital products like ebooks are all the rage these days due to the duel factors that consumers are snapping them up like wildfire and that you as the merchant are able to make almost 100% profit on the deal.
Whereas a $20 product such as a physical book sold in a store may only make the author a dollar or even less in profit, selling the same product online in a digital format will give you $18 or more of profit. It’s pretty simple math why so many people are choosing to market their ebooks online, isn’t it?!
The question of course from aspiring ebook authors is how to accept credit cards on their website so they can process orders smoothly and then allow their customers to effortlessly download the book they have just purchased.
In this article then we’re going to look at 3 popular merchant account providers used by ebook sellers so we can compare the various options and so, I hope, enable you to make an informed decision about the best provider for you.
Clickbank
Clickbank is currently the most popular processor used by ebook publishers. This is for a number of reasons though us helped by the fact that Clickbank focuses purely on sellers of digital products so understands the market and the needs of ebook sellers well.
One of the most popular features of Clickbank is that they run your affiliate program for you. Clickbank’s software records who sends each sale to you, then credits the respective affiliate with their commission, depositing the remainder into your account. Every two weeks, so long as you reach Clickbank’s payment threshold, Clickbank sends everyone out a check for the balance of their account without you having to lift a finger. This is incredibly powerful and helps you to recruit an army of affiliates to promote your ebook for you in exhcange for a commission.
Finally, Clickbank also has a massive marketplace where you can list your ebook for sale thus increasing the number of potential affiliates and direct customers who visit your site.
Paypal
Paypal is another popular option with ebook sellers. Unfortunately in contrast to Clickbank, Paypal won’t run your affiliate program for you, though this can be got around using a variety of third-party software designed specially for the task.
However Paypal does have two benefits over Clickbank that are enough for some people to use them instead.
Firstly the transaction fees that Paypal charges you to accept credit cards are considerably lower meaning more profit for you.
Secondly, whilst Clickbank pays you your earnings every two weeks, you can request payment from Paypal straight into your bank account at any time allowing you to access your money faster.
Your Own Merchant Account
The final option I’d like to investigate here is that of having your own merchant account.
Arguably the least popular of the 3 options for ebook sellers there are a few things you need to be aware of.
Paypal and Clickbank are both third party processors which means essentially that you’re using someone else’s merchant account. The result of this is that you hve less control over your business. As an example, stories are rife on the Internet about Paypal “locking” people’s accounts for no obvious reason meaning that they are then unable to access the funds that are legitimately theirs. To me, if someone prevented me from accessing hundreds, even thousands of dollars that are rightfully mine, I’d be pretty angry.
As well as giving your business more control, your own proper merchant account may well work out more cost effective over the long term. They may charge a small monthly fee, but the per-transaction fees can be so much cheaper that you can actually make a considerable saving in lot of cases.
In the end, the decision really is yours. Clickbank for simplicity, Paypal for speed of payment or your own merchant account for flexibility and cost effectiveness.
Tuesday, 12 January 2010
US-Based Merchant Account Restrictions
Certain business types are restricted from establishing US-based small business merchant accounts. The decision on who exactly is to be included in this “black List” is made by the Credit Card Associations of Visa and MasterCard and is mandatory for all credit card processing companies which are also their members. What this means is that no US credit card merchant processor is allowed to acquire transactions from blacklisted entities.
The biggest factor in determining whether a particular type of business should be prohibited from setting up a US-based credit card payment processing service is the chargeback generation potential. In some industries, historical data show that it is simply unacceptably high. It should be noted that, even when a merchant account processing service is established, chargeback levels are still closely monitored and, if they exceed 1% of the total volume for three consecutive months, you will lose your credit card processing account. Applications from merchants engaged in the following activities will not be considered for US-based credit card transaction processing account, regardless of exception:
Any merchant engaged in Illegal activity. Adult oriented products or services (all media types: internet, telephone, printed material etc.). Internet/MOTO pharmacies (where fulfillment of medication is performed with an Internet or telephone consultation, absent a physical visit with a physician). Re-importation of pharmaceuticals from foreign countries. Internet/MOTO firearm or weapons sales (including ammunition). Internet/MOTO cigarette tobacco sales. Occult materials. Online gambling. Lotteries, raffles, gambling. Escort services. Collection agencies engaged in the collection of uncollectible debt, as defined by the Associations. Credit repair agencies. Sports forecasting or odds making.
Sunday, 10 January 2010
Ways On Making a Good Credit Rating
Every people have his own dreams to reach standards and comfort of life. Such example is buying a house or leasing an apartment to build a home or basically first applying for a job to earn more money just to buy these basic commodities. With all these day to day survival, there are companies who offer credit for purchase. They first evaluate their customers’ major purchase, insurance application or leasing an apartment on credit history. The credit history has the information on the requests for credit or charge accounts, personal loans, insurance, as well as the history of payment on the bills, the income and the amount of debts. It will show whether one has been sued, arrested of filed for bankruptcy. In order to get a good evaluation of the credit history one has to have good credit ratings.
How to get good credit ratings?
Apply only for new credit when really needed. Banks and financial providers take pleasure in lending new credit; it is a sign of under constant financial stress and relying on borrowing moneyto get by. This ‘loose’ financial nature is not assuring to the banks, and as a result one should limit frequent application for new credit.
Keep old/current merchant accounts open for as long as possible. A customer who has made repayments on time and been financially responsible for 4 years on his account will make a much larger impact that someone of the same financial competence for 6 months.
Reduce debt: credit ratio. Regardless of how much you earn, a $2000 balance on a $5000 limit card is much worse than a $2000 balance on a $10,000 limit card. The $5,000 limit card would have a debt:credit ratio of 60%, as opposes to 20% on the latter card.
Make repayments and fee payments on time. The simplest way to improve or slowly revamp credit rating is to continue or begin making all repayments on time. This will prove to the banks certain client is responsible, who they won’t have to bother for repayments yet still earn interest from.
Friday, 8 January 2010
Getting A Merchant Account For The Travel Industry
The Travel Industry is a very lucrative business. Unfortunately, it may be difficult to get a merchant account for this business. There are a few merchant account providers that will take a chance, but for the most part, the majority is not interested. Getting a merchant account for this category is considered high risk.
When you do find a merchant account that will cater to you, they probably will have restrictions on what they will do for your business. For instance, the ones that will work with you will only approve charges for commissions, car rentals and hotel stays. They won’t approve charges for cruises, tours or airplane tickets.
The unfortunate part about this is that you may not find out that the latter isn’t covered until some of your customers notice and start to complain because the funds are being held up. That’s not a good way for providers to do business. Merchants should know up front what they’re going to pay for.
Prior to a transaction, the merchant should be approved for the amount specified. There are some providers who will approve the merchant, but the catch is there is a limit to the amount merchants can get.
When getting a merchant account in the travel industry, merchants find out after the fact about hidden fees. These fees include monthly gateway fees, annual fees, batch fees and other fees that are not listed until such time.
Another downside is that if the merchant does not meet the minimum amount of monthly sales each month, they’re subject to a service fee.
Beware of merchant providers trying to sell you merchandise that you don’t need. They’ll try to sell merchants expensive equipment or a lease that you can’t cancel after you’ve signed on the dotted line. Since the more legitimate merchant providers do their business over the phone, the equipment is nothing but a waste and not needed.
There is also something called “teaser rates”. Some merchant account providers will offer special rates in order to get merchants to sign up with their company, only to raise the price again after a few months. Offers like these usually have another catch. Since the rates initially offered are supposedly low, look out for any penalties that may be attached to the offer.
Hidden fees alone can cost merchants from three to four digits in any given period. This usually happens when a merchant account provider omits certain fees. Check this out before you sign on the dotted line.
Merchants should also check out their customer service. Merchants should see how they operate and how they treat them. Merchants should look and see if they do what they say they’re going to do.
When looking for a merchant account provider, they should be able to provide great service. After all, merchants do paying money to them for assistance. If they can’t provide or do the work, then it’s time to look for someone else.
Merchants need to remember to be prudent when looking for merchant providers that will meet their needs.
Subscribe to:
Comments (Atom)
